Wednesday, July 3, 2013

Market Roundup | 2 July 2013


FBMKLCI  1771.89pts  -3.25pts  (-0.18%)   Volume  1.170b  Value RM1.799b
 
1) The KLCI rose in early trade but quickly loss its momentum as the market saw choppy trade throughout the day. This bucked the global bourses which were positive behind better US ISM data and EUROPE manufacturing data. Regional market ASX +2.63% closed higher after RBA put interest rate cut on hold but kept doors open for another rate cut. In the local market COMSUMER-0.54% were the biggest loser weighed down by BAT -2.44% and UMW -2.17%. Market breadth was negative with losers edging gainers by 364 : 334. Futures closed 1774.5 (3pts premium)
 
2) Heavyweights : GENTING -1.73% RM10.20, CIMB -0.72% RM8.23, SIME -0.84% RM9.52, HLBANK -2.79% RM13.90, BAT -2.44% RM60.00, UMW -2.17% RM14.44, PETGAS +1.53% RM21.22, AMBANK +1.89% RM7.52
 
3) DBT : TALIWRK 16.37mil @ RM0.90 (3.75% PUC), ASDION 15.968mil @ RM0.30 (24.04% PUC @ 6.2% discount), CONNECT 13.138mil @ RM0.10 (8.41% PUC).
 
4) Situational:-
 
CBIP +2.26% RM2.72 - CBIP accepted a letter of award from Felda Palm Industries for a continuous sterilization mill project worth RM15.8m, which involves mechanical and electrical works for upgrading to continuous sterilization system for Felda's palm oil mill in Lepar Hilir, Pahang.
 
 
5) PANTECH : announced that its wholly owned subsidiary, Pantech Stainless & Alloy Industries Sdn Bhd ("PSA") will be one of the companies that may be affected should the US International Trade Administration of the US Department of Commerce follows through the anti-dumping suit. The Administration has voted on 28 June 2013 to continue with the anti-dumping suit on welded stainless steel pipes from Malaysia, Vietnam and Thailand; Mildly -ve to neutral. Group anticipates the anti-dumping suit to have minimal impact on the Group's performance, at less than 3% of its FY2014 revenue. Out of PSA's capacity of 1,000 tonnes per month, it exports only 300 tonnes (30%) of stainless steel pipes per month to the U.S. The remaining 70% of the production are not affected by the anti-dumping suit. Group has also begun mitigation activities by increasing production of stainless steel fittings by threefold by the second half of financial year ending 28 February 2014. Pantech's trading and manufacturing divisions will continue to be buoyed by the: 1) rising project flows into the oil and gas sector; and 2) contributions from new markets with its purchase of Nautic Steels.
 
6) Market: Likely to consolidate sideways as the KLCI index stalled around resistance levels at 1780/1782 while lower liners continued their negative bias.